The U.S. would also reduce its military personnel
A U.S. defence spending plan is due to be released on Monday and will significantly curtail military expenditures.
It will also reposition the armed forces away from long-term foreign operations for the first time since 2001, a news report published on Monday, said.
“You have to always keep your institution prepared, but you can’t carry a large land-war Defence Department when there is no large land war,” a Pentagon official told The New York Times.
In 2011, slightly more than half a million people served in the U.S. military.
That number is slated to drop to around 440,000 troops in 2015, the lowest number since before the U.S. entered World War II in 1941.
Defence Department statistics charting the number of men and women serving as active-duty military personnel showed a near-steady decrease in numbers from a height of six million troops during World War II.
The proposal must be approved by Congress and is likely to prove controversial with contractors seeking to protect their economic interests and legislators who have military bases in their districts.
The plan reflects a recent Bipartisan Budget Act reached by President Barack Obama and Congress to cap military spending at 496 billion dollars for the fiscal year that begins Oct. 1.
It would eliminate a fleet of air force A-10 attack aircraft, reduce the growth of housing allowances and cut commissary subsidies for military personnel.